Related: State Street's Sweetheart Deal
Bailout Bonuses Were Also Tax Breaks
"CEO's $29m reward may cause fireworks" by Beth Healy, Globe Staff | March 17, 2009
State Street Corp.'s chief executive, Ronald E. Logue, will probably have to defend his nearly $29 million in compensation before shareholders at the annual meeting in May, a Wall Street analyst said yesterday, because of the company's ailing stock price and recent financial stumbles.
Banking analyst Nancy Bush said State Street's near-term prospects have been hurt by billions of dollars in potential losses on debt investments that could result in write-offs, and its image as a cautious financial manager has been tarnished. The bank's shares have plunged 71 percent since March 2008 - more than those of its two closest rivals in the business of managing money and handling accounting and other services for pensions, mutual funds, and other large investment clients.
"That has to be laid at Ron Logue's feet," Bush said.
Logue's total compensation in 2008 was valued at $28.7 million, slightly more than in 2007, according to the company's proxy statement, filed late Friday. At his request, Logue did not receive a bonus or incentive pay for the year. But with stock awards from prior years and a $7.8 million increase in the value of his deferred pension benefit, Logue's total pay rose slightly.
In October, State Street became one of the country's first institutions to receive US taxpayer funds - $2 billion, as part of the then-Bush administration's effort to bolster the financial sector. In January, when State Street reported its earnings, its shares lost more than half of their value. The company reported $9 billion in unrealized losses on its books, in investment securities and in its commercial paper program....
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State Street, spokeswoman Hannah Grove said, was profitable for all four quarters of 2008, "despite the extremely challenging environment." And the company continues to believe, she said, that investments that have suffered losses on paper will rebound in value.
In December, the company said it would cut up to 1,800 jobs, or 6 percent of its workforce. State Street is instituting a companywide salary freeze for 2009 and is paying reduced 2008 bonuses for most employees, while eliminating them for top executives.
Logue is not alone among bankers receiving large paychecks in bad times.... The other four highest-paid officers at State Street also earned more last year than in 2007, when their past-years' stock awards and deferred pension benefits are counted as 2008 compensation.
In each case, they also received more perks in 2008. For example, Logue received $120,824 in "other compensation," including a company car and driver and the services of a security specialist....
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These guys have not a clue, do they?
Yup, here they are LIVING IT UP, LIVING the GOOD and HIGH LIFE on YOUR BAILOUT DIME, taxpayers!!!
This "bailout/rescue" is without a DOUBT the GRETEST LOOTING JOB in the HISTORY of the WORLD!!!!!!
